ARTICLES ABOUT SURRENDER VALUE BY DATE - PAGE 4

You should wait for a few more days if you are planning to buy a traditional endowment plan this tax- saving season. The Insurance Regulatory and Development Authority (Irda) on Monday has hinted that the final guidelines for traditional plans will be released after the Insurance Advisory Committee's meeting this Friday. Last year, the draft guidelines on traditional plans had made a case for lower charges and higher life cover as well as the surrender value, among other proposals.

MUMBAI: Private insurer IndiaFirst Life Insurance today launched 'Simple Benefit Plan' that offers dual benefits of a life cover and assured savings. "Simple Benefit Plan offers an insurance cover on your life and additionally helps you earn and secure returns on the money that you invest with us, with premiums as low as Rs 174 per month. "This plan is customised for people who want to save and at the same time secure their families from uncertainties of life, but do not have large disposable incomes," IndiaFirst Life Insurance Director Sales Kamalakar Sai said in a release issued here.

A life insurance policy lapses when the due premium has not been paid even within the grace period. A lapsed policy means that the benefit of insurance will not be available to protect the financial interest of the dependants in the event of the death of the insured. A lapsed cover can be revived by the policyholder during the period allowed by insurer before its maturity. The procedure for revival depends on the type of policy and the duration of its lapse. Reinstatement: The documentation requirements for revival or reinstatement of a policy depend on the time elapsed between the date of lapsation and the date when the request for revival has been made by the policyholder.

By Pankaj Mathpal, (CFP, Managing Director, Optima Money Managers) Delay in Claim My father was a member of the Country Vacations Club, Hyderabad, which had agroup accident policy from HDFC ERGO General Insurance with a cover of Rs 5 lakh for each member. My father died in an accident in August 2007. The family members were not aware of the accident policy at that time. After we came to know of the policy, we forwarded the claim form with attached details to the company.

If one has a life insurance policy , one can take a loan against it from the insurance company. The amount depends on the type of policy and the period for which the policy has been in force. The interest charged, which is available at a lower rate, the period of the loan and the terms of repayment are decided by the insurer. The loan is a percentage of its surrender value. In the case of traditional policies, the proportion of the surrender value available as loan may be as high as 90%. If an insurance company provides a loan against Ulips, the value will depend on the type of fund.

Equity is bandied about as a good instrument for achieving long-term goals by most financial advisers. The Srikanths obviously don't think so. For a couple in their early 30s, a mere 3% of their portfolio is in equity, which is a good reflection of their investing bias. On the other hand, 23% of their portfolio comprises physical gold and 26% has been invested in real estate. The silver lining is that their debt investments are in the right proportion at about 42%, and since they have simple, limited goals, they will be able to achieve them without much trouble.

MUMBAI: Private insurer IDBI Federal Life launched a plan that offers "attractive guaranteed" return along with tax benefits for those willing to invest for a short to medium term. "IDBI Federal Bondsurance Plan is specially crafted for those seeking a one-time lump sum investment that delivers attractive tax-free guaranteed returns along with the promise of life insurance protection," the company's Managing Director and CEO, G V Nageswara Rao , said in a release here.

Our expert Pankaj Mathpal , CFP & Managing Director, Optima Money Managers guides you in matters relating to insurance. Surrender Value I am paying 2 lack per year as insurance premium. My fund value is still negative. If I surrender now, then the initial amount of 2 lakh would be forfeited. Is there any way to get the surrender value, inclusive of the initial premium? D Banerjee I recommend you paying the subsequent premiums for minimum premium paying term under your insurance policy and then you can surrender your policy or convert it to a fully paid-up policy depending on the fund value.

Surrender value is the amount an insurance firm pays a policyholder if he opts for voluntary termination before the policy's maturity or occurence of the insured event. It is that part of the premium payment which goes into an investment account and earns a return. It is also known as 'cash value' or 'policyholder's equity'. Surrender values are available in investment-cum-insurance policies, such as endowment plans, money-back plans and Ulips, since they originate from the investment component.

Product Details ICICI Prudential Life Guard is a term plan with an added feature of premium return. Thus, if the policyholder survives till maturity, all the premiums paid during the term shall be repaid. In the event of the death of the policyholder during the policy term, the insurance cover (sum assured) shall be paid to the nominee. Our View The feature of extended life cover is impressive. However, the premiums payable are much higher than what are otherwise payable in case of a traditional term plan as the scheme guarantees repayment of same at maturity.